Macquarie Group (MQG) fell by as much as 5.17% on its debut as a new company today.
Australian biggest investment bank, Macquarie Bank, re-listed itself under the new name ‘Macquarie Group' this morning after it had completed a restructure aimed at accelerating the global growth of its non-banking businesses.
Macquarie Group is listed as a non-operating holding company, which gives it more flexibility to expand its expanding global funds management and investment banking businesses.
Macquarie Bank was in need of a restructuring due to the fact that it earns more than half of its revenues from overseas, and in recent years the growth of the company had been driven largely by non-traditional banking activities.
Macquarie Bank raised $8 billion from other banks which allowed Macquarie Group to buy the bank's investment banking operations and its United States broking activities.
Remaining at Macquarie Bank are general equities, interest rate, foreign exchange and debt trading, mortgage and margin lending, real estate financing and funds management.
The Macquarie Group fell today alongside other financial firms and major banks due to renewed pressure following more bad news out of US subprime markets.
The stock reached a low of $78.00 after Citigroup announced that it was expecting writedowns of between $US8 billion to $US11 billion to be shaved off its net income, due to its subprime exposure.
Macquarie Group never recovered from the day's low, closing down by $4.25 to finish at $78.00.
